Pfizer Sells Capsugel for $2.4 Billion to KKR, Oil in Focus

Bikram Pandey
04 Apr, 2011
New York City

U.S. stocks struggle as crude oil prices gain and commodities edge higher. Vodafone agreed to sell its stake in the second largest French mobile telecom operator for $11.3 billion and Pfizer agreed to sell its capsules maker unit for $2.4 billion.

[R]11:20 AM New York – U.S. stocks traded higher as crude oil prices gained and commodities edged higher. Vodafone agreed to sell its stake in the second largest French mobile telecom operator for $11.3 billion and Pfizer agreed to sell its capsules making unit for $2.4 billion.[/R]

U.S. stocks traded higher in the early trading and crude oil prices increased above $108 a barrel in New York trading. Metals and commodities generally edged higher on a day when no new economic reports are anticipated.

Oil took a center stage on a day when deals were in the news. Crude oil futures for immediate month delivery increased to $108.56 and retained a positive bias as rebels struggle to hold on to two key cities in Libya. Libya exports nearly 1.6 million barrels a day or less than 2% of the world oil exports.

Deals drove market trading in Europe and Asia. The euro traded at $1.42 and gold and silver traded firm.

Pfizer agreed to sell its capsule making business for $2.4 billion to a private equity operator Kohlberg Kravis Roberts & Co.

China controlled Mimmetals Resources launched a C$7 a share offer for Perth, Australia based Equinox Minerals. The bid values the copper miner at C$6.3 billion and is lower than market expectations.

Rhodia soared 48.6% to 31.29 euros after it agreed to a deal with Belgium based Solvay for 31.60 euros a share. Solvay increased 2.6% in Brussels trading. The offer values the company at 3.4 billion euros.

Qiagen gained 0.6% after it announced a deal with Australia based Cellestis Limited for $350 million that will give the company a control of its early tuberculosis detection diagnostic and monitoring technology.

Vivendi increased 0.8% to 20.67 euros after it agreed to acquire 44% stake in the second largest mobile company in France, SFR for 7.9 billion euros from the UK based Vodafone.

Stock Movers

Southwest Airlines Co. declined 3% to $12.30 and the company said it will cancel 100 more flights today after the National Transportation Safety Board discovered “small cracks” in three 737-300 jets.

Vivus Inc increased 11% to $6.99 after the company said its experimental drug to lower blood pressure showed some positive results after two years of use.

Pfizer Inc added 1% to $20.45 after the company said it sold its Capusgel business to private equity manager Kohlberg Kravis Roberts & Co for $2.38 billion in cash.

Epicor Software Corp soared 11% to $12.45 after the company said it agreed to be acquired by private equity funds managed by Apax Partners for $12.50 a share.

Ambassords International Inc plunged 78% to 50 cents after the cruise line operator filed for a bankruptcy protection.